Wal-Mart Sues Visa Claiming Card Transaction Fee Conspiracy

[tomm2thumbs]

Source: Washington Post

The world’s biggest retailer seeks at least $5 billion in damages for what it claims are violations of federal antitrust laws that could triple that sum. Wal-Mart, one of dozens of large merchants that dropped out of a nationwide, multibillion dollar antitrust settlement with Visa and MasterCard Inc. to pursue their own lawsuits, filed its complaint in federal court in Fayetteville, Arkansas, on March 25.

“Visa’s monopoly power has enabled it to dictate price and inhibit competition,” Wal-Mart said in its complaint.

<snip>

The U.S. Court of Appeals for the District of Columbia on March 21 rejected a challenge by Wal-Mart, Target Corp. and other retailers to federal rules governing how much banks can collect for debit card transactions, leaving in place an October 2011 rule capping the average swipe fee at about 24 cents per transaction.

While banks had objected to the limit, retailers contended that if the Federal Reserve, which set the rate, had followed the law the fees they paid on each swipe of a customer’s card would have been cut more and network competition enhanced.

Read more: http://washpost.bloomberg.com/Story?docId=1376-N3448J6KLVRU01-7LLJLI2NAAA6M0JJQDJ24CV01F

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How delicious was Walmart's comment...? 'monopoly power has enabled it to dictate price and inhibit competition'

I can't imagine what mirror they are looking into while saying such things of others. I really just can't imagine.

[hobbit709]

1. Much less saying that with a straight face.

[pangaia]

2. 'monopoly power has enabled it to dictate price and inhibit competition'

Does that not sound just like repubs in a state of eternal projection?

[hedgehog]

20. +1

[L0oniX]

23. Pay your employees so little that they can't get a debit card. Problem solved?

Not enough income to even start a bank account to get a debit card. On the other hand isn't Walmart trying to foist their own card on the serfs? I am surprised they don't have their own WAmscot or bank.

[pugetres]

29. I thought Arvest Bank was the Walton (Walmart) owned bank?

They started popping up like cancer in the 90s in the area that I used to live and we all thought of them as bank of walmart.

[pangaia]

35. The walmart where i live does have a bank.

I forget the name. But it is not that one...

PS I go to walmart only to buy green onions.
Well, I bought a humidifier there once--piece of junk.

I can't stand the smell, among other things...

[jmowreader]

34. That's not it at all

Walmart is bitching about the fee a retailer pays when a debit card is used in their stores. Walmart uses the time honored business strategy of 'fuck everybody": fuck their vendors, employees, customers and the towns their stores are in. Only the banks haven't cooperate.

[hatrack]

3. Gosh, who to root for?

[tomm2thumbs]

4. I know, right?

Perhaps the court system getting an influx of money to handle important criminal cases still awaiting attention.

[Squinch]

5. Exactly. I think it's nice to watch them cannibalize themselves.

Really, it's surprising how often a "cannibal" smilie would come in handy.

[tomm2thumbs]

7. nom nom

[Squinch]

10. !

[tomm2thumbs]

11. hee hee

inspired to find one by U

I like how the one who eats the other one... then gets eaten by a new one... ad infinitum

[onehandle]

8. The lawyers.

Let them grow fat with Walmart and Visa money.

[Trust Buster]

6. I think they're both guilty of profiting.......

With monopoly power an ewe pay for it. Just like our cable and internet bills.

[TheCowsCameHome]

9. Hey Wal-Mart, you sell mirrors, right?

Buy one, and look in it.

[seabeckind]

12. But walmart isn't paying anything

the customer is.

If walmart had a higher average transaction amount, the swipe fee wouldn't be that much of a factor. But walmart caters to those who can least afford the overhead. They are reaping what they sowed.

My complaint would be that if they win this case, would they return that money to their customer? Or pocket it...wanna bet?

Same thing with every other monies that are withheld by corporations for the "benefit" of their customers and employees. If we were to eliminate the employer portion of the SS tax, would the employer increase their wages? No.

In this case it smacks of the wolves fighting over our carcass.

Anything to increase profits...legally or illegally.

[seabeckind]

13. Observation...

since so much of our aid is now in the form of a benefit card whereas in the past it was in the form of food stamps...

just a thought, then again might be nothing.

[LiberalFighter]

14. Yep! The company never really pays the taxes levied against them.

Just as the company never pays the swipe fees for credit cards. It is all part of the cost included in the price of goods. If companies didn't pass on the those costs they would be out of business.

[DallasNE]

15. Is Wal-Mart Now For Regulation?

First they cry for deregulation then when they get it they complain about the consequences of what they asked for. In today's environment cartel's like Visa and MasterCard flourish. Just the other day a cartel of giant IT companies was exposed to keep down labor costs by agreeing not to recruit staff from one another. Capitalism = corruption. That is the way it has always worked. It is a cost of doing business.

[DeSwiss]

16. Today's new phrase boys and girls is: ''dramatic irony''

dramatic irony

noun
Definition: Irony that is inherent in speeches or a situation of a drama and is understood by the audience but not grasped by the characters in the play.

Origin: 1905–10

Use Dramatic irony in a sentence:

The Monopoly WalMart: “Visa’s monopoly power has enabled it to dictate price and inhibit competition.”

- Seriously folks, the Elite's gene pool is now mud puddle.

K&R

[mountain grammy]

17. Clash of the blood sucking Titans.. may they both go down in flames

[Kelvin Mace]

18. Two soulless ghouls in a razor fight

[mackerel]

26. Brilliant!

[brooklynboy49]

28. I LOVE it!

[baldguy]

19. Walmart's usual MO is to dictate to their suppliers the margin Walmart will pay

No matter what the market actually allows. Walmart doesn't believe they should be bound by the law of supply & demand. More proof that they're not a capitalist organization.

[L0oniX]

21. Debit card = no protection.

[blackspade]

22. That comment good out to me as well.

[packman]

24. God, thank you for post

best laugh I've had today - Wal-mart and credit card companies at each other throats. Now where did I put that video of the boa constrictor crushing a crocodile.
IF Wally world wins, does this mean we can expect lower prices at our nearest mega-store (he asks , full well knowing the answer)?

[mackerel]

25. I wonder if VISA will counter-sue?

[Jackpine Radical]

27. Amazing how everyone picked up on the same line in the OP--

“Visa’s monopoly power has enabled it to dictate price and inhibit competition,” Wal-Mart said in its complaint.

It's delightful when the predators go after each other. Greed colliding with greed, unethical corporate giants battering each other. Too damn bad it won't be fatal to either one, let alone both.

[benld74]

30. ******'s monopoly power has enabled it to dictate price and inhibit competition

What is your first thought when you read the line above?

[Coventina]

31. Back in the bad-old-days when I worked for a major credit card company in the fraud department

We were expressly FORBIDDEN to even attempt to "charge-back" any fraudulent sales made at Walmart.
No matter how egregiously the store had acted, no matter if an employee or supervisor was party to the fraud, Walmart could not be held responsible. We got our hands slapped if we even mentioned it.

Why? Walmart was "too big to punish". The card company wasn't willing to risk losing the acceptance of the card over a piddly several millions in fraudulent activity.

[The Stranger]

32. Aw fuck yeah.

I'm beginning to like Wal-Mart.

[greatlaurel]

33. Walmart is in very deep trouble.

If they are doing this, they must be desperate for cutting more costs. Our local Walmart has lots empty shelves and often fails to carry things like graham crackers and salted peanuts. The store is poorly staffed and is starting to look very dirty and disorganized and it is just a few years old. The produce section is especially nasty.

They have one the worst upper management teams. Sam's kids sure do not know how to hold onto the business. Greed makes you stupid.